Consumers determine value of the product on the basis of the opportunity cost to buy the product.
Opportunity cost – in macroeconomic theory, the opportunity cost of one activity is the loss of value or benefit that would be incurred by engaging in that activity, in comparison to engaging in an alternative activity offering better return in value or benefit.
When the consumers calculate the value of product, they look at the benefits and then subtract the cost to see if the benefits exceed the costs.
Therefore the consumers determine value of product on the basis of opportunity cost to buy the product by doing cost benefit analysis.
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Answer: True
Explanation:
Fiscal policy refers to the government suing taxation and spending policies to influence the economy of a country. If the government wants to improve production, they reduce taxes and increase spending and if they want to reduce production, they increase taxes and reduce spending.
Fiscal policy proponents believe that the government is right to use fiscal policy to correct the market because its effect is more direct. John Maynard Keynes was one of the most famous proponent for Fiscal policy.
Answer: $13,580
Explanation:
The ending balance of the Work in Process:
= beginning Work in Process inventory + direct materials + direct labor + factory overhead - transferred out of the department
= $11,300 + $77,300 + $25,300 + $15,180 - $115,500
= $13,580
Therefore, the ending balance of the Work in Process Inventory account for the Fabricating Department is $13,580.
Research risk and reward strategies with tactical advantages and disadvantages and use them to create how you want to play risk, either passive or dominant in your strategy but remember to get help, theres no need to do it alone if you have friends that have experience in this game and are willing to help you create a strategy that will enhance your experience and greatly increase your skills in Risk.
Answer:
B- Self interest results in the Nash Equilibrium which is the best outcome for the players.
Explanation:
Prisoner's dilemma: It is the answer in the game theory to the reason that why 2 conflicted parties doesn't cooperate. According to Prisoner's Dilemma, 2 conflicted individuals doesn't cooperate because they both are acting to secure their own self interest, considering that the collective interest would be far much better, but they are interested in win/lose situation.
Nash Equilibrium: This occurs when both parties realize that no extra benefit will incur if they change their strategy, so they both remain on the same strategy and solve the dilemma while getting the optimum outcome for both of them.
